Contact:
Wayne A. Schellhammer
Chairman & Chief Executive Officer
American CareSource Holdings, Inc.
Tel. 214-596-2400
FOR IMMEDIATE RELEASE
AMERICAN CARESOURCE HOLDINGS ANNOUNCES
SECOND QUARTER 2006 FINANCIAL RESULTS
Irving, TX, August 11, 2006 - American CareSource Holdings, Inc. (OTCBB:
ACSH.OB) today announced financial results for the quarter and six months ended
June 30, 2006.
Net revenue increased 172% to $2.8 million in the second quarter of 2006 from
$1.0 million in the second quarter of 2005.The contribution margin from these
sales increased to $660 thousand in 2006 from a negative $52 thousand in 2005.
Net loss for the quarter ended June 30, 2006 was $264 thousand, or $0.02 per
share, compared to a loss of $679 thousand, or $0.05 per share, in the prior
year.
For the six months ended June 30, 2006 net revenue increased 125% to $5.3
million from $2.3 million in the first six months of 2005. The contribution
margin from these sales increased to $1.1 million in 2006 from a negative $5
thousand in 2005. Net loss for the six months ended June 30, 2006 was $524
thousand, or $0.04 per share, compared to a loss of $1.2 million, or $0.10 per
share, in the prior year. Cash used in operations decreased from $907 thousand
for the six months ended June 30, 2005 to $248 thousand in the first six months
of 2006.
"We are pleased to report significant growth during the second quarter as we
continue to build sales momentum," stated Wayne A. Schellhammer, Chief Executive
Officer and Chairman of the Board for American CareSource Holdings. "While our
sales cycle is proving to be slightly longer than we anticipated, we are very
encouraged with our near term sales prospects."
About American CareSource Holdings, Inc.
American CareSource Holdings, Inc is a comprehensive ancillary care service
provider offering a national network of more than 21,000 ancillary provider
locations. American CareSource Holdings, Inc.'s ancillary network management
provides a complete outsourced solution for a wide variety of healthcare payors
and plan sponsors including self-insured employers, indemnity insurers, PPOs,
HMOs, third party administrators and both the Federal and local governments.
Through its product offerings, American CareSource Holdings, Inc. offers its
clients substantial discounts on services rendered through its network of
ancillary care providers in more than 30 service categories.
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Any statements that are not historical facts contained in this release are
forward-looking statements particularly those statements related to potential
annual billed revenue under the client implementation and the number of
additional payors that may be added to the company's network. It is possible
that the assumptions made by American CareSource Holdings, Inc. for purposes of
such statements may not materialize in that actual results could differ
materially from anticipated results. The client for which services are to be
provided may terminate its agreement, providers may withdraw from the company's
program or other factors may affect the ability of the Company to recognize any
revenue in connection with their relationship. Such statements may involve
further risks and uncertainties, including but not limited to those relating to
product demand, pricing, market acceptance, the effect of economic conditions,
and intellectual property rights, and the outcome of competitive products, risks
in product development, the results of financing effort, the ability to complete
transactions, regulatory conditions and other risks identified in this release,
and the Securities and Exchange Commission filings of American CareSource
Holdings, Inc.
###
(Tables to Follow)
AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of
June 30, December 31,
ASSETS 2006 2005
============== ==============
CURRENT ASSETS
Cash $ 5,370,354 $ 23,399
Accounts Receivable 1,670,154 482,159
Other 114,349 30,151
Total Current Assets 7,154,857 535,709
Net Property, Plant, and Equipment 154,747 175,608
Intangible Assets 1,814,610 1,921,401
Goodwill 4,361,299 4,361,299
Total Assets $ 13,485,513 $ 6,994,017
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Due to Service Providers $ 1,400,909 $ 386,217
Accounts Payable and Accrued Liabilities 560,570 352,383
Current Maturities of Long-Term Debt 346,933 20,231
Total Current Liabilities 2,308,412 758,831
Long-Term Debt 48,858 3,845,929
Total Liabilities 2,357,270 4,604,760
STOCKHOLDERS' EQUITY:
Common Stock-par value $0.01, 40,000,000 shares authorized 144,521 123,713
and 14,452,071 and 12,371,309 shares issued and outstanding as of
June 30, 2006 and December 31, 2005 respectively Preferred Stock-par
value $0.01, 10,000,000 shares authorized and none outstanding 0 0
Additional Paid in Capital 16,884,584 7,734,800
Deferred Debt Issuance Cost (138,900) (231,500)
Accumulated (Deficit) (5,761,962) (5,237,756)
Total Stockholders' Equity 11,128,243 2,389,257
Total Liabilities and Equity $ 13,485,513 $ 6,994,017
============== ==============
See notes to unaudited consolidated financial statements.
AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended
June 30,
2006 2005
---------------------------------------
REVENUES
Net Ancillary Health $ 2,796,623 $ 1,005,014
Patient Claims Processing 33,318 33,803
---------------------------------------
Net Revenue 2,829,941 1,038,817
Total Cost of Revenues 2,169,835 1,090,913
---------------------------------------
Contribution Margin 660,106 (52,096)
---------------------------------------
Selling, General, and Administrative Expense 804,225 482,812
Depreciation and Amortization 80,099 83,912
---------------------------------------
Total Operating Expense 884,324 566,724
---------------------------------------
Operating (Loss) (224,218) (618,820)
---------------------------------------
Other (Income) Expense 34,754 (7,378)
Debt Issuance Cost 46,300 35,748
Net Interest and Finance Cost (41,303) 31,563
---------------------------------------
Total Other Expense 39,751 59,933
Net (Loss) Before Income Tax (263,969) (678,753)
Income Tax Expense 0 0
---------------------------------------
Net (Loss) $ (263,969) $ (678,753)
=======================================
NET LOSS PER SHARE - BASIC AND DILUTED $ (0.02) $ (0.05)
WEIGHTED AVERAGE COMMON SHARES 14,447,061 12,371,309
See notes to unaudited consolidated financial statements.
AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Six Months Ended
June 30,
2006 2005
---------------------------------------
REVENUES
Net Ancillary Health $ 5,228,855 $ 2,213,876
Patient Claims Processing 65,467 134,125
---------------------------------------
Net Revenue 5,294,322 2,348,001
Total Cost of Revenues 4,215,309 2,352,552
---------------------------------------
Contribution Margin 1,079,013 (4,551)
---------------------------------------
Selling, General, and Administrative Expense 1,335,490 937,890
Depreciation and Amortization 158,347 160,426
---------------------------------------
Total Operating Expense 1,493,837 1,098,316
---------------------------------------
Operating (Loss) (414,824) (1,102,867)
---------------------------------------
Other (Income) Expense 37,386 (7,378)
Debt Issuance Cost 92,600 59,580
Net Interest and Finance Cost (20,604) 42,180
---------------------------------------
Total Other Expense 109,382 94,382
Net (Loss) Before Income Tax (524,206) (1,197,249)
Income Tax Expense 0 0
---------------------------------------
Net (Loss) $ (524,206) $ (1,197,249)
=======================================
NET LOSS PER SHARE - BASIC AND DILUTED $ (0.04) $ (0.10)
WEIGHTED AVERAGE COMMON SHARES 13,862,855 12,371,309
See notes to unaudited consolidated financial statements.
AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Six Months Six Months
Ended Ended
June 30, 2006 June 30, 2005
--------------------------------------
OPERATING ACTIVITIES:
Net loss $ (524,206) $ (1,197,249)
Adjustments to reconcile net loss to net cash used in
operating activities:
Stock option compensation expense 74,392 --
Depreciation and amortization 158,347 160,426
Compensation expense related to warrants 92,600 59,580
(Gain) on Disposal of Assets -- (7,378)
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable (1,187,995) 23,769
(Increase) in other current assets (84,198) (39,598)
Increase in accounts payable and accrued liabilities 208,187 100,180
Increase (decrease) in amounts payable to service providers 1,014,692 (7,187)
--------------------------------------
Net cash used in operating activities (248,181) (907,457)
--------------------------------------
INVESTING ACTIVITIES:
Purchase of Property and equipment (30,695) (188,021)
Proceeds from the Sale of Equipment -- 31,656
--------------------------------------
Net cash used in investing activities (30,695) (156,365)
--------------------------------------
FINANCING ACTIVITIES:
Borrowings from line of credit 200,000 1,993,328
Payment on line of credit or long term debt (3,670,369) (43,256)
Net proceeds from the exercising of stock options 26,352 --
Net proceeds from the sale of capital stock 9,069,848 --
Net (payments) to parent company -- (873,339)
--------------------------------------
Net cash provided by financing activities $ 5,625,831 $ 1,076,733
--------------------------------------
NET INCREASE IN CASH AND CASH EQUIVALENTS $ 5,346,955 $ 12,911
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 23,399 16,749
--------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 5,370,354 $ 29,660
======================================
Supplemental disclosures cash flow information
Cash paid for interest expense $ 46,995 $ 41,133
See notes to unaudited consolidated financial statements.